Multiple Choice
Assuming no change in the nominal exchange rate,how will a decrease in the price level in the United States relative to France affect the real exchange rate between the two countries? (Assume the United States is the "domestic" country.)
A) The real exchange rate will rise.
B) The real exchange rate will fall.
C) The real exchange rate will be unaffected.
D) The impact on the real exchange rate cannot be predicted.
Correct Answer:
Verified
Correct Answer:
Verified
Q180: When net capital flows are positive<br>A)capital inflows
Q181: If the exchange rate changes from $1.45
Q182: Assuming no change in the nominal exchange
Q183: The current account balance equals the value
Q184: When net capital flows are negative<br>A)capital inflows
Q186: If net foreign investment is positive,which of
Q187: Which of the following would you expect
Q188: If you know that a country's net
Q189: The level of saving in the United
Q190: Based on the following information,what is the